$3000 Gold/$50 Silver --Nick Santiago 10-23-23 #537

Daily Market Wisdom with Nick Santiago

1. Options Expiration for October is finally over. Traders and investors can get back trading without so much institutional game playing.
This morning, the markets are starting out on the weaker side. The 4189 level should be some support for the S&P 500 Index. It has been tested this morning right after the opening bell. This is going to be a key support level that the markets must hold.
2. There was a big takeover this morning. Chevron (CVX) bought Hess (HES) for $53 billion. I believe that is $171/share. Last week, Exxon (XOM) bought Pioneer Natural Resources (PDX). This could start more takeovers and consolidation in the energy group.
3. Yields are still the top topic in town. Today, the 10-year note yield is around 4.914% and the 2-year note yield is at 5.095%. The spread between 2's and 10's is now just 17 basis points. In other words, if the yield curve starts to normalize soon it actually could be bullish for the short term.
4. Geopolitical events are a wild card. I have no idea what will happen in the Middle East. War is inflationary and if it expands to a larger war it will have a very negative effect on the markets.
5. Gold and silver are pulling back a little today. They have both been very strong lately, but need a pullback or a breather after the recent run up since October 6th.
6. Bitcoin is strong today trading higher by 2.5% to 30,600. It looks as if the likelihood of a spot bitcoin etf is likely to be approved and that is the catalyst for the move. A weekly close above 29810 on bitcoin futures would eliminate the current bearish pattern in place.